At Software Giant, Taking the Safe, Profitable Route Often Wins Out Over Innovation

Months before Apple Inc. unveiled its iPad in January 2010, the tech world was buzzing about mockups of a tablet computer from Microsoft Corp. Created by an inventor of the company's Xbox videogame machine, the Courier folded like a book and let users sketch and jot ideas on a touchscreen.

That spring, Microsoft Chief Executive Steve Ballmer told employees at Courier's Seattle laboratory that he was pulling the plug on the device....